During the month of January, Rs. 22,500 worth of materials, Rs. 11,250 of labour and Rs. 6,750 of factory overheads were introduced into Process I. At the end of the month, 40,000 units had been produced and transferred to the next process and 10,000 units were incomplete. It was estimated that the incomplete units had reached a stage in the production as follows:

Materials 100% and Labour and Overheads 50% each.

In the next Process II, Rs. 22,475 worth of materials, Rs. 15,225 of labour, Rs. 14,500 of factory overheads were added. The units produced and transferred to the fi nished stock amounted to 35,000 and 5,000 units were left in the process, with 25% complete as to material, labour and overhead.

Prepare a statement of production, statement of cost, a statement of evaluation and the necessary process accounts.